Top stories of China bond market on Dec. 11 are as follows:
1. The People's Bank of China, China's central bank, conducted 20 billion yuan worth of 7-day revere repos at annualized yield of 2.25 percent in Thursday's open market operation. Given that 80 billion yuan worth of reverse repos are due this week, together with the 10 billion yuan of 7-day reverse repos offered on Tuesday, the central bank withdrew a net 50 billion yuan out of the financial system via this week's open market operations. Traders noted that despite investors' rising demand for cash at the year-end, the liquidity condition in the financial system still remained loose on the whole.
2. China's Ministry of Finance (MOF) would issue 28 billion yuan worth of 7-year T-bonds on December 16. This is the additional issue of the 26th batch of book-entry coupon-bearing T-bonds offered by the ministry in 2015.
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